- Maharashtra raised Rs 5,600 crore, the highest in RBI's state bond auction on Sept 8
- Investor demand was strong with a bid-to-cover ratio of about 3.3 times for Rs 16,900 crore
- Andhra Pradesh borrowed Rs 3,800 crore through three re-issued securities in the auction
Maharashtra accounted for 33% of the Rs 16,900 crore raised by eight states and Union Territories through a Reserve Bank of India-conducted bond auction on September 8, emerging as the biggest borrower in the latest round of state market borrowings.
Investor demand remained firm, with competitive bids worth Rs 55,046 crore received against the notified amount.
This translated into a bid-to-cover ratio of around 3.3 times.
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The RBI accepted competitive bids worth Rs 16,010.8 crore, while another Rs 889.2 crore was allotted through the non-competitive route.
Maharashtra raised Rs 5,600 crore through three securities, making it the largest borrower in the auction.
The state raised Rs 1,000 crore through a bond maturing in 2034, Rs 2,200 crore through a 2044 security and Rs 2,400 crore through a 2054 paper. Cut-off yields ranged from 7.546 percent to 7.7596 percent.
Andhra Pradesh was the second-largest borrower, raising Rs 3,800 crore through three re-issued securities.
The state raised Rs 1,000 crore through its 2035 bond, Rs 1,200 crore through the 2043 security and Rs 1,600 crore through the 2056 paper.
Their cut-off yields were 7.6198 percent, 7.7551 percent and 7.7576 percent, respectively.
Gujarat, Punjab and Rajasthan raised Rs 2,000 crore each.
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Punjab recorded the highest cut-off yield in the auction at 7.7983 percent on its 2043 security.
Jammu and Kashmir raised Rs 1,000 crore through two securities, while Meghalaya and Goa borrowed Rs 400 crore and Rs 100 crore, respectively.
The bonds auctioned carried maturities between 2033 and 2056, with yields largely ranging between 7.5 percent and 7.8 percent.
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